Copper market’s biggest whale fuels speculation of a major shift
The world’s single biggest buyer of copper, State Grid Corp. of China, has slowed its purchases of copper wire this year.
The Zambian government announced Friday it is increasing the cost of its mining licences to equal neighbouring countries’ rates and deter speculators from buying land in the country.
Zambia’s mining minister, Yamfwa Mukanga, said fees for large-scale mining will jump from $340 to $5,400 beginning this month, reports Reuters.
The country, which is Africa’s top copper producer, made headlines on Wednesday, after revoking the mining license for Collum, a Chinese-owned coal company in the south of the country accused of violations of safety and environmental laws.
Some of the foreign resource companies operating in Zambia include First Quantum Minerals (TSX:FM), Vedanta Resources (LON:VED) and Glencore (LON:GLEN).
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